The artificial intelligence (AI) market is projected to reach $826 billion by 2030, climbing fourfold from current levels, according to Statista. This presents significant investment opportunities, particularly in AI software companies like Palantir Technologies (NYSE: PLTR) and Microsoft (NASDAQ: MSFT).
Palantir Technologies reported a revenue growth of 27% year-over-year for Q2, driven by both commercial and government contracts, with its U.S. government business increasing by 8% quarter-over-quarter. The company’s adjusted free cash flow margin rose from 15% in Q4 2022 to 22% in the most recent quarter.
Meanwhile, Microsoft saw a 13% year-over-year increase in Office 365 commercial revenue, partly due to the integration of Copilot AI features. Its cloud services revenue grew 29% year-over-year last quarter, with AI services contributing 8 percentage points to this growth, highlighting the increasing momentum in the AI sector.
